9% match So 15 from me, 9 from them 24% total. State government. They might not pay the highest wages, but you get good benefits and lots of holidays off, plus annual leave, and I got 12 paid weeks off when my son was born. Very grateful.
My employer does a 5% 1:1 match, +3% even if you don't contribute. In my early 30's when we had 3 kids, the 13% was all I was able to financially contribute. I'm happy I was contributing the full 25% in my 20's, and now we are saving about 40% since our income has gone up a lot.
With 401(k)s, you should also factor in when the match vests. If only a portion of that 12.5% vests immediately, you should definitely make it up with your contributions.
It is a good point but thankfully the jobs I’ve had recently have either vested immediately or by a one year anniversary (though you need a minimum amount in the plan too). When I left my first job out of college I made sure to stick around long enough to be vested. I just could not see myself leaving that money on the table and I wasn’t in a huge rush to change jobs before I reached that point.
That’s what I’ve had to factor in for now - 6 months into a job….aiming for 25% gross this year but can’t account for the vesting until the funds are actually mine so I’m not counting them yet. Takes 3 years to be fully vested :/
If you can exclude the match from 20-25%, do it! Interesting that people keep asking for “the okay” to save less when you know there is no right answer. If you want more money by retirement, save more. If you don’t care as much and want to enjoy the present, save less. That concept remains constant but if your only goal is to replace % of income by a specific year, yes you can include the match. Compound interest doesn’t care who contributed employee or employer; it grows all the same. You can use the boost to relax or you can use it to turbocharge. Both are great options to choose from lol 🤷🏽♂️ 12.5% though?! I’d max the hell out of that
My company matches 100% of the first 5 percent I contribute, and I'd say that is pretty generous; however, first 12.5% contributed at 100 or even 50% is just amazing. Kudos to him!
In Australia it is mandatory for employers to put 11% in to your super which is basically a 401k. When employers advertise wages they generally advertise the amount inclusive of super.
That's a pretty good deal, they don't have to do jack for us in the US. My employer will match 5% and my wife's does 6% and that's about as good as it gets here.
I get a 50% match on up to 6% contribution, I'm envious of this 1:1... plus my income is low, so it's not much. I save 50% of my income in general though cause I don't want to waste these early years!
Just chiming in, as I had 3 employers last year. One was 6% match, 3% autocontribution, but low salary. 9% total from company. One was 4% match, 3% auto contribution, and high enough salary to still be more than option 1. 7% total from company. The last is 6% match with instant vesting, and 6.5% profit sharing to 401k. Salary not as high as the second, by waaaay higher than the first. 12.5% total from company, depending on profit sharing. Likely to be closer to 11% after year's profit. This was also the only one with a Roth 401k option.
ERCOT (Electric Reliability Council of Texas) gives a free 10% contribution to 401k, and then matches employees contribution at 4%. The best 401k match ive ever heard of, but vesting schedule is 60% at year 3, 80% at year 4, and 100% at year 5.
I get a 16% Direct Contribution to my 401k, no match. I add another 10% myself into a Roth 401k. That maxes the legal limits. Its quite a decent benefit from my job.
I think an important point is how much of your employer match is fully vested? And if it isn’t fully vested then what percentage vested is it? If you have to work somewhere for 5 years to get a fully vested retirement then I would encourage you not to count it. Or let’s say you have 20% vested interest until 2 years of work at a company… then that 12.5% match is only 2.5%. Also be aware that the employer match is pretax not Roth. I think this type of nuance would be beneficial when you guys talk about employer match. For me I get 4.5% match and I make sure I put in 25% of my own money (between Roth IRA, Roth 401k and HSA) then my match is gravy UNTIL it becomes fully vested!
I get a total of 18% match/contribution. 6% match,4% contribution, and another 8% contribution because I gave up future earnings to my pension. I contribute 22% to a roth 401k. So combined savings of 40%
I’m in a union so we get 1.20 an hour into the 401 and we get a pension, looking through yalls content to see if yall answered about factoring in pensions to the target for lower income earners before I join a stream to ask
2009 my employer took away the match temporary. This year, my wife lost her match. I say take advantage of stashing away money asap in life, things could change....and if it doesn't change then you get to back off and set it on CRUISE later in!
12.5% from both employee and employer is from working at a class 1 railroad it’s automatically taken for railroad retirement. The catch is it’s not into a 401K that you get to take with you. It’s instead of social security, and you need to work there for 30 years to get the full benefits of that pension.
Is the recommendation 25% savings strictly for retirement? Or should we include other types of saving in there? E.g., saving for college, saving for a car, house, etc.
My company puts in 5.1 if I contribute 6. But they also have a pension. I have no idea if the pension is any good or not. Guess I should look into that
Employee contribution should be count, but it should be included both at the numerator and denominator, so if you contribuite 12.5%, and your match is 12.5%, you are not contributing a total of 25%, but just 22%
Wife works for a large pharma company…they match 4.5% if you contribute 6%…and if you are employed at the end of the year she gets an additional 9% of her salary based on age and years employees. Total this year was 13.5%! That is the max as she has been employed for 20 years.
Unless it fully vests immediately, I don't include the match. It may not feed my ego as much, but I don't want my investment rate to be tied to the decision of a specific company. I could leave the job before I'm fully vested, or they may stop doing the match if they are really pressed for cash. I rather overestimate than underestimate.
I’ve get a 100% match up to 6% and I thought I had it good… currently I have my withholdings set at 12% to make sure I max out my 401K contribution limit every year.
My employer match isn't a % of salary, it's a % of contributions. 100% for first like $1500, 50% the next $1500, 33% the next $7500, and 10% after that. When I put in the 401k max, $22,500, the company puts in another $5925
I contribute 18% and my employer matches with 22% and with a 5% interest each year growth…so I guess I’m good then But I invest 38%, on my own with deferred comp and Roth IRA contribution. It’s 56% on myself or 78% with employer …the reason I can do this it’s because of my side job…I only count on my main job cause my side job varies month to month
I’m 45 and I definitely do not like assuming Social Security should be included in what I expect. At the very least that will be an added bonus to my retirement funds but I’d rather not need it and get it rather than need it and not get it. Btw, my employer matches up to 6% and then adds another 3% to my 401k, the extra 3% was added after they discontinued their pensions (I started working there at the tail end so I’m vested to get something, the current estimate is about $8k a year).
I'm the same age - while I agree with the sentiment, not counting any Social Security at all is too conservative, and over-saving can cost you time and happiness almost as much as under-saving. I think the best answer is to use the 25% shortfall as listed in the last trustee report - take your expected SSI benefits and reduce it to 75%. If you still want to be even more conservative, you can use the calculator to reduce your future expected earnings.
I personally work my savings rate out as (amount saved)/(Total amount paid, less taxes). So in amount saved I would included the company match, but it would also be in the amount paid. So if I received £100,000, and a company match of 12.5% or £12,500, I would say I saved £25,000 (my 12.5% + company 12.5%) out of £112,500 - less taxes.
I have a pension, not a 401k, because I'm not from the US, and my employer puts in 19.53% and I have to put in 8.37% for a total of 27.9%. Sadly for 2024 it does go down. My employer only puts in 18.9% and I can only contribute 8.1% for a total of 27%. Luckily I can build up additional pension for a tax benefit. I can't choose to not contribute and the goal of this is to replace your full average income in retirement. I'm golden if I don't save any extra. Of course I'm not doing that. I'm aiming at 25% without pension.
Say a normal person makes $80K income, ($20K) tax, so $60K post-tax. 25% to Roth is $15K, meaning they live on $45K. To replace $45K, they plan on $45K/$15K = 3:1 ratio Or their guy, $80K income, ($20K) tax, still $60K post-tax. 12.5% to Roth is $7.5K, meaning they live on $52.5K. To replace $52.5K, they should plan on investing more. $52.5K/$15K = 3.5:1 ratio People with generous company matching need to increase their investing further if to replace their realized income. That percentage will vary for everyone and varies based on the company's match policy, but the 25% to retirement goal is a 3:1 ratio. In the case of our guy with the complete match, no stated cap, he needs to find the right ratio. And he needs to consider his retirement planning soon, with the Secure Act 2.0 changing a few key rules.
A few scenarios using regular math: First 5% ... $60,000 after-tax + $3,000 match = $63,000 adjusted / 4 = $15,750 savings total - $3,000 match = $12,750, or 21.25% of your actual after-tax. You live on $47,250, you invest another 25% or $15,750. First 10% ... $60,000 after-tax + $6,000 match = $66,000 adjusted / 4 = $16,500 savings total - $6,000 match = $10,500, or 17.5% of your actual after-tax. You live on $49,500, you invest another 25% or $16,500. As for this person with an unlimited match, I don't know why they don't max-out annually first, as they themselves can save $22,500 in a 401K and a 100% employer match won't change things for them (a 200% employer match would be just above the $66K combined max for 2023, assuming they're making >$66K). They can also take advantage of 401K loans alongside the match or convert to Roth IRA and make unqualified penalty-free withdrawals of their contributions.
That's how I do it. What is my take home/what is being spent from that, as I max out my Roth (13k) so lowering that value by the Roth is really all I need to do.
I get 8.1%, and it's not a match, I just get it. The catch is I'm opted out of social security. I make a lot less than 200k. Should I count the employer contribution?
Is this per person or per couple? My spouse and I both put in 20-25% or is that a combined percentage of what we are contributing to our 401k (ex. 10% each)?
If you are both putting in 10% each, because of ratios, that ends up also being 10% of your total income. It would be 20-25% each, which would still become 20-25% total
pilots at major airlines have awesome 401k... 15%-18% NEC (non elective contribution). NEC is so much better than match because you can put in zero and they still put the full 16%... happy to see this video because my airline does 15% and I do 15% so I wasn't sure if I should consider that 30% or not
another great thing about NEC...once the employer reaches their max 401k contribution limit (61k for 2022), you can just get that money added to ur paycheck!! also we are 100% vested on day 1
I’d look into it b/c you may be paying that “lump sum” over the course of a year. All you do is pay the premium which already invests for you. At least that’s what I found out.
I'm sorry if this is a rookie question, but i just want to clarify. If he's investing 12.5% and his employer is investing 12.5%..... is that the same as saying he's getting a dollar for dollar match on his contributions? For example is he getting a 12.5% match on his salary or 12.5% on what he in contributing to his 401k? Thank you for the clarifications.
Yes, that would be a dollar for dollar match. So if he made $50,000, he would be putting in $6,250, and his employer would be putting in $6,250, for a total of $12,000.
I’ve always received a discretionary match between 17-21% of everything contributed at my employer. 2021 was 21%, can’t wait to see what 2022. I’ve personally never counted it, just an additional nice to have.
You are also getting 10-15% employer contributions towards your pension also (depending on if your in the old 0.8 or current 4.4% employee contribution rate). So between 5% towards TSP and then the 5% match , then also another 15% with FERS your closer to 24-25% with only having to contribute 5.8 or 9.4% yourself.
1.5 is pretty low. 3% is even pretty stingy from the employer. I now get 4% but they just lowered it from 5% sadly. They did just do a pretty significant salary bump so I'm not too concerned. Overall you really need to look at the total package you're being offered and compare it with other business. 75k with 10% match is still less than 125k with no match...
Coming from a guy that can retire today, and chooses to keep working cause it’s fun…..invest as much as you can early in index funds. Kept 85-90% in stocks for 30+ years and it did well. Today’s environment may be better for 75-80%, as bonds actually have some heft to them once again.
Most larger conpanies decieve you with percentages of what you contribute AND they have a discretionary clause that it's "up to", so if they can manipulate the match if needed to help their financials. Genius, but it causes employees that are concious of their retirement to realize THEY CAN NOT COUNT on the match, because it CAN be manipulated.
Large portion of 401ks are Safe Harbor plans- meaning no manipulation and immediate vesting - be careful persuading folks from walking away from an important wealth building tool.
@@MoneyGuyShow In no way am I persuading people to OVERLOOK them or avoid them. They are still fantastic tools and ANY match at all makes it worth it, but cautionary advice to read it thoroughly is warranted so you don't COUNT on it. 5 years to vest 100% in my 401k. The cautionary tail is to READ it. If I asked 10 of my coworkers to describe our 401k plan, not one of them could articulate the match or vesting schedule. Why?! Because it is deliberately confusing.
Based on these replies, it seems that employers have finally done the math and figure out that it’s better for them to not have a bunch of 40-year people on the pay roll and hitting the healthcare costs because they can’t afford to retire.
Agreed. I don't have any and neither want to. Fuck kids. Especially these days with social media bs and the way these kids are, I do and rather help the kids who really need help when I retire. I challenge anyone to change my mind. 😂
9% match
So 15 from me, 9 from them
24% total. State government. They might not pay the highest wages, but you get good benefits and lots of holidays off, plus annual leave, and I got 12 paid weeks off when my son was born. Very grateful.
My employer does a 5% 1:1 match, +3% even if you don't contribute. In my early 30's when we had 3 kids, the 13% was all I was able to financially contribute. I'm happy I was contributing the full 25% in my 20's, and now we are saving about 40% since our income has gone up a lot.
With 401(k)s, you should also factor in when the match vests. If only a portion of that 12.5% vests immediately, you should definitely make it up with your contributions.
It is a good point but thankfully the jobs I’ve had recently have either vested immediately or by a one year anniversary (though you need a minimum amount in the plan too).
When I left my first job out of college I made sure to stick around long enough to be vested. I just could not see myself leaving that money on the table and I wasn’t in a huge rush to change jobs before I reached that point.
Great point. There are some wild vesting dates out there. Mine is 5 years now for 100%!
@@Pantherhandz Same with mine
That’s what I’ve had to factor in for now - 6 months into a job….aiming for 25% gross this year but can’t account for the vesting until the funds are actually mine so I’m not counting them yet. Takes 3 years to be fully vested :/
best point here
12.5% WOW!!
I got a 50% match for up to 8%, so 4% from them
If you can exclude the match from 20-25%, do it!
Interesting that people keep asking for “the okay” to save less when you know there is no right answer. If you want more money by retirement, save more. If you don’t care as much and want to enjoy the present, save less. That concept remains constant but if your only goal is to replace % of income by a specific year, yes you can include the match. Compound interest doesn’t care who contributed employee or employer; it grows all the same. You can use the boost to relax or you can use it to turbocharge. Both are great options to choose from lol 🤷🏽♂️ 12.5% though?! I’d max the hell out of that
My company matches 100% of the first 5 percent I contribute, and I'd say that is pretty generous; however, first 12.5% contributed at 100 or even 50% is just amazing. Kudos to him!
My employer contributes 18% in our 401(a). Plus offers a 457. It’s insanely good
I literally was debating this with myself the other day. Thanks guys
In Australia it is mandatory for employers to put 11% in to your super which is basically a 401k. When employers advertise wages they generally advertise the amount inclusive of super.
That's a pretty good deal, they don't have to do jack for us in the US. My employer will match 5% and my wife's does 6% and that's about as good as it gets here.
I get a 50% match on up to 6% contribution, I'm envious of this 1:1... plus my income is low, so it's not much. I save 50% of my income in general though cause I don't want to waste these early years!
this is what i get plus takes 3 years for that to even be fully vested 😢
Just chiming in, as I had 3 employers last year.
One was 6% match, 3% autocontribution, but low salary. 9% total from company.
One was 4% match, 3% auto contribution, and high enough salary to still be more than option 1. 7% total from company.
The last is 6% match with instant vesting, and 6.5% profit sharing to 401k. Salary not as high as the second, by waaaay higher than the first. 12.5% total from company, depending on profit sharing. Likely to be closer to 11% after year's profit. This was also the only one with a Roth 401k option.
It doesn't hurt to go over and beyond your investing goal considering you can. In retirement, you'll be grateful you did.
ERCOT (Electric Reliability Council of Texas) gives a free 10% contribution to 401k, and then matches employees contribution at 4%. The best 401k match ive ever heard of, but vesting schedule is 60% at year 3, 80% at year 4, and 100% at year 5.
Well I’m glad the ridiculous amount I pay for electricity goes to something good atleast…
My employer only provides a 50% match of 6%. So basically I only get a 3% match. Better than nothing though, but I would love me some 12.5%!
same here and not even fully vested until 3 years
Same exact situation here!!
I get a 16% Direct Contribution to my 401k, no match. I add another 10% myself into a Roth 401k. That maxes the legal limits. Its quite a decent benefit from my job.
You must be a pilot 😂
I think an important point is how much of your employer match is fully vested? And if it isn’t fully vested then what percentage vested is it?
If you have to work somewhere for 5 years to get a fully vested retirement then I would encourage you not to count it. Or let’s say you have 20% vested interest until 2 years of work at a company… then that 12.5% match is only 2.5%.
Also be aware that the employer match is pretax not Roth.
I think this type of nuance would be beneficial when you guys talk about employer match.
For me I get 4.5% match and I make sure I put in 25% of my own money (between Roth IRA, Roth 401k and HSA) then my match is gravy UNTIL it becomes fully vested!
Im blessed to have 100% match up to 10 percent we still have many people that even take advantage of that
I get a total of 18% match/contribution. 6% match,4% contribution, and another 8% contribution because I gave up future earnings to my pension. I contribute 22% to a roth 401k. So combined savings of 40%
My company does 7% match and 10% profit sharing directly to my 401k. Should that be included?
I’m in a union so we get 1.20 an hour into the 401 and we get a pension, looking through yalls content to see if yall answered about factoring in pensions to the target for lower income earners before I join a stream to ask
These matches are crazy, best I've ever had was 4%. My first match was only 1%.
2009 my employer took away the match temporary. This year, my wife lost her match. I say take advantage of stashing away money asap in life, things could change....and if it doesn't change then you get to back off and set it on CRUISE later in!
12.5% from both employee and employer is from working at a class 1 railroad it’s automatically taken for railroad retirement. The catch is it’s not into a 401K that you get to take with you. It’s instead of social security, and you need to work there for 30 years to get the full benefits of that pension.
Is the recommendation 25% savings strictly for retirement? Or should we include other types of saving in there?
E.g., saving for college, saving for a car, house, etc.
Retirement only.
Hubbys employer does 12.5% It is freaking amazing!
My company puts in 5.1 if I contribute 6. But they also have a pension. I have no idea if the pension is any good or not. Guess I should look into that
Employee contribution should be count, but it should be included both at the numerator and denominator, so if you contribuite 12.5%, and your match is 12.5%, you are not contributing a total of 25%, but just 22%
My employer pays the pension payment to the multiple employer pension and also matches 100% up to 4% to my 401k as well
Wife works for a large pharma company…they match 4.5% if you contribute 6%…and if you are employed at the end of the year she gets an additional 9% of her salary based on age and years employees. Total this year was 13.5%! That is the max as she has been employed for 20 years.
Unless it fully vests immediately, I don't include the match. It may not feed my ego as much, but I don't want my investment rate to be tied to the decision of a specific company. I could leave the job before I'm fully vested, or they may stop doing the match if they are really pressed for cash. I rather overestimate than underestimate.
Yeah my company matches 4% but not fully vested for FIVE YEARS. I don’t count it at all because it’s not my money yet.
I’ve get a 100% match up to 6% and I thought I had it good… currently I have my withholdings set at 12% to make sure I max out my 401K contribution limit every year.
My employer match isn't a % of salary, it's a % of contributions. 100% for first like $1500, 50% the next $1500, 33% the next $7500, and 10% after that. When I put in the 401k max, $22,500, the company puts in another $5925
So if you contribute the max to your 401k, you are getting 26.33% matching? Can I work for this company? Lol
I contribute 18% and my employer matches with 22% and with a 5% interest each year growth…so I guess I’m good then
But I invest 38%, on my own with deferred comp and Roth IRA contribution. It’s 56% on myself or 78% with employer …the reason I can do this it’s because of my side job…I only count on my main job cause my side job varies month to month
Great information about generosity there at the end. Thanks for sharing.
Federal Employees get a 5% match if you contribute 6%. So just your contribution + the match is 11%.
My company does 8% (4 no matter what, 100% for the first 4 in)
I’m 45 and I definitely do not like assuming Social Security should be included in what I expect. At the very least that will be an added bonus to my retirement funds but I’d rather not need it and get it rather than need it and not get it.
Btw, my employer matches up to 6% and then adds another 3% to my 401k, the extra 3% was added after they discontinued their pensions (I started working there at the tail end so I’m vested to get something, the current estimate is about $8k a year).
I'm the same age - while I agree with the sentiment, not counting any Social Security at all is too conservative, and over-saving can cost you time and happiness almost as much as under-saving. I think the best answer is to use the 25% shortfall as listed in the last trustee report - take your expected SSI benefits and reduce it to 75%. If you still want to be even more conservative, you can use the calculator to reduce your future expected earnings.
I personally work my savings rate out as (amount saved)/(Total amount paid, less taxes). So in amount saved I would included the company match, but it would also be in the amount paid. So if I received £100,000, and a company match of 12.5% or £12,500, I would say I saved £25,000 (my 12.5% + company 12.5%) out of £112,500 - less taxes.
Imagine having a match at all.
Imagine having an employer
@@captured_agent5714 Imagine imaginging
@@MovieJustin Imagine
Im
Imagine all the people
My company matches 7%, but 4% of that is 401k and 3% goes into a cash balance pension fund.
All this talk about high percentage match is great, but what is the maximum dollar match capped at? And is it capped quarterly or yearly?
My employer match is 2.5% 😂...
damn what a peasant I get 3% ;)
I'm at 50% match up to 6%, so....3% too.
@@Chris-fd4kh Unfortunately, no. I think they do 50% up to 6% instead of the 3% directly as a way to encourage you to contribute more.
Ooof 6% here
2.5% is still better than 0.0%
If you can squeeze yourself to go without counting match…it’s a 1-time pinch
I have a pension, not a 401k, because I'm not from the US, and my employer puts in 19.53% and I have to put in 8.37% for a total of 27.9%. Sadly for 2024 it does go down. My employer only puts in 18.9% and I can only contribute 8.1% for a total of 27%. Luckily I can build up additional pension for a tax benefit. I can't choose to not contribute and the goal of this is to replace your full average income in retirement.
I'm golden if I don't save any extra. Of course I'm not doing that. I'm aiming at 25% without pension.
My employer matches 50% of my contribution up to the IRS limit so this year I was able to contribute the full 22k and my employer contributed 11k
My employer matches 6% plus 4% whether I contribute or not
Say a normal person makes $80K income, ($20K) tax, so $60K post-tax. 25% to Roth is $15K, meaning they live on $45K. To replace $45K, they plan on $45K/$15K = 3:1 ratio
Or their guy, $80K income, ($20K) tax, still $60K post-tax. 12.5% to Roth is $7.5K, meaning they live on $52.5K. To replace $52.5K, they should plan on investing more. $52.5K/$15K = 3.5:1 ratio
People with generous company matching need to increase their investing further if to replace their realized income. That percentage will vary for everyone and varies based on the company's match policy, but the 25% to retirement goal is a 3:1 ratio. In the case of our guy with the complete match, no stated cap, he needs to find the right ratio. And he needs to consider his retirement planning soon, with the Secure Act 2.0 changing a few key rules.
A few scenarios using regular math:
First 5% ... $60,000 after-tax + $3,000 match = $63,000 adjusted / 4 = $15,750 savings total - $3,000 match = $12,750, or 21.25% of your actual after-tax. You live on $47,250, you invest another 25% or $15,750.
First 10% ... $60,000 after-tax + $6,000 match = $66,000 adjusted / 4 = $16,500 savings total - $6,000 match = $10,500, or 17.5% of your actual after-tax. You live on $49,500, you invest another 25% or $16,500.
As for this person with an unlimited match, I don't know why they don't max-out annually first, as they themselves can save $22,500 in a 401K and a 100% employer match won't change things for them (a 200% employer match would be just above the $66K combined max for 2023, assuming they're making >$66K). They can also take advantage of 401K loans alongside the match or convert to Roth IRA and make unqualified penalty-free withdrawals of their contributions.
That's how I do it. What is my take home/what is being spent from that, as I max out my Roth (13k) so lowering that value by the Roth is really all I need to do.
I get 8.1%, and it's not a match, I just get it. The catch is I'm opted out of social security. I make a lot less than 200k. Should I count the employer contribution?
I think he means he contributes 6% and employer matches 6% total 12ish% …just guessing. I don’t count my employer match or social security.
I’m guessing 25% of gross income for 401k and net for Roth IRA?
My employer gives one percent and matches an additional 7%. But we also get a pension.
Is this per person or per couple? My spouse and I both put in 20-25% or is that a combined percentage of what we are contributing to our 401k (ex. 10% each)?
If you are both putting in 10% each, because of ratios, that ends up also being 10% of your total income. It would be 20-25% each, which would still become 20-25% total
@@CaptainCinnabar Thank you - that makes sense.
pilots at major airlines have awesome 401k... 15%-18% NEC (non elective contribution). NEC is so much better than match because you can put in zero and they still put the full 16%... happy to see this video because my airline does 15% and I do 15% so I wasn't sure if I should consider that 30% or not
another great thing about NEC...once the employer reaches their max 401k contribution limit (61k for 2022), you can just get that money added to ur paycheck!! also we are 100% vested on day 1
That’s pretty slick deal
Just started a new job and they have a match but only after a year of work
I'm at 6% match. Plus a bonus match.
If your employer provides a lump hsa payment would you count that towards the 20-25%?
I’d look into it b/c you may be paying that “lump sum” over the course of a year. All you do is pay the premium which already invests for you. At least that’s what I found out.
Higher Education often matches more than other industries. But, they often pay a lot less so it's a toss up.
But the runway to vesting is often much longer, and even then the payout only comes if you choose to receive it in pension funds until you retire ☹️
I'm sorry if this is a rookie question, but i just want to clarify. If he's investing 12.5% and his employer is investing 12.5%..... is that the same as saying he's getting a dollar for dollar match on his contributions?
For example is he getting a 12.5% match on his salary or 12.5% on what he in contributing to his 401k?
Thank you for the clarifications.
Yes, that would be a dollar for dollar match. So if he made $50,000, he would be putting in $6,250, and his employer would be putting in $6,250, for a total of $12,000.
I’ve always received a discretionary match between 17-21% of everything contributed at my employer. 2021 was 21%, can’t wait to see what 2022. I’ve personally never counted it, just an additional nice to have.
I only get 1.5% match so it hardly matters if I include it or not 😢
The mathematically correct accounting would be to include the employer match in both the numerator and the denominator.
This guy maths
I have an employee match along with 10% contribution to esop annually. I include both like this as part of my 30%.
I get a 33% match up to $1500 per year
8%? 10%? 12.5%? Matches! Wow! The way it should be. Sadly, nowhere near that with my match.
What’s a match? Mine just does a profit sharing contribution annually. Typically very small.
Must be nice 12.5 😶. I'm getting 5% 😢Is it because we get pension under FERS? Assuming I retire at 62🤔
You are also getting 10-15% employer contributions towards your pension also (depending on if your in the old 0.8 or current 4.4% employee contribution rate). So between 5% towards TSP and then the 5% match , then also another 15% with FERS your closer to 24-25% with only having to contribute 5.8 or 9.4% yourself.
I get 4% dollar for dollar and that's it and I'm fine with that.
My employer match is 50% of the first 4%
12%!! Im lucky i got 3.5%
I don’t get a match unfortunately
5%. 10% double match.
What's an employer match.....
If we contribute 6% the company matches 7%. We also have a generous pension.
Can someone tell my company that 1.5% match is a joke? I've tried but they just tell me to sit down...
That is terrible! I worked for a company that did 50% on the dollar up to 4%. Left as soon as I had enough experience to attract a better employer.
1.5 is pretty low. 3% is even pretty stingy from the employer. I now get 4% but they just lowered it from 5% sadly. They did just do a pretty significant salary bump so I'm not too concerned. Overall you really need to look at the total package you're being offered and compare it with other business. 75k with 10% match is still less than 125k with no match...
Once again, they went on a tangent and didn’t answer the question
See 4:15
Dude 8 percent … we used to be 6 and then got reduced to 5 :(
4% here they just reduced it from 5
My employer match is only 1% 🙃
Coming from a guy that can retire today, and chooses to keep working cause it’s fun…..invest as much as you can early in index funds.
Kept 85-90% in stocks for 30+ years and it did well. Today’s environment may be better for 75-80%, as bonds actually have some heft to them once again.
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9% match $:$ … I have 12% in …
Most larger conpanies decieve you with percentages of what you contribute AND they have a discretionary clause that it's "up to", so if they can manipulate the match if needed to help their financials. Genius, but it causes employees that are concious of their retirement to realize THEY CAN NOT COUNT on the match, because it CAN be manipulated.
Large portion of 401ks are Safe Harbor plans- meaning no manipulation and immediate vesting - be careful persuading folks from walking away from an important wealth building tool.
@@MoneyGuyShow In no way am I persuading people to OVERLOOK them or avoid them. They are still fantastic tools and ANY match at all makes it worth it, but cautionary advice to read it thoroughly is warranted so you don't COUNT on it. 5 years to vest 100% in my 401k. The cautionary tail is to READ it. If I asked 10 of my coworkers to describe our 401k plan, not one of them could articulate the match or vesting schedule. Why?! Because it is deliberately confusing.
12.5%? Pics or it didn’t happen
These generalizations are overly broad. My wife’s employer doesn’t even offer retirement. She has her own plan, but wow.
Based on these replies, it seems that employers have finally done the math and figure out that it’s better for them to not have a bunch of 40-year people on the pay roll and hitting the healthcare costs because they can’t afford to retire.
I put 6%into my pension… my employer contributes 21%.
So unfair. I'm at 8.37% to my employer 19.53%. What country?
If I contribute 8% my employer gives 2 (their max) and if I had it better I wouldn't be plowing as much into my Roth oh well
Lol a company match
“You gotta have the kids” can you stop making procreation sound like a duty that everyone needs to fulfill? What bs
Agreed. I don't have any and neither want to. Fuck kids. Especially these days with social media bs and the way these kids are, I do and rather help the kids who really need help when I retire. I challenge anyone to change my mind. 😂
If it doesn't apply to you then ignore it.
It brings a lot of joy to have children. If you don’t want kids that’s fine, but most people do.